AM Best Upgrades Credit Ratings of Wright National Flood Insurance Company
AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to "a" (Excellent) from "a-" (Excellent) of Wright National Flood Insurance Company (WNFIC) (San Antonio, TX). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect WNFIC's balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The rating upgrades reflect a revision in the company's business profile assessment, which has benefitted from its strong market presence as the leading U.S. writer of federal flood insurance, which is supported by the largest Write Your Own sales and support staff, in addition to WNFIC's excellent management with a successful history of executing its strategy. Despite its mono-line orientation, WNFIC's unique business profile with an exclusive flood focus has proven to benefit the organization as a proponent of the Federal Emergency Management Agency's new pricing methodology for the National Flood Insurance Program (NFIP), Risk Rating 2.0, by providing early opt-in quotes, education and resources to consumers and agents.
WNFIC's balance sheet strength continues to be supported by its strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), excellent quality of capital, and conservative investment portfolio. The company's solid operating performance is primarily driven by profits produced fom service fees and ceding commissions from the NFIP, resulting in the company's ability to generate surplus growth through operations.
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